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DATE=4/28/2000 TYPE=CORRESPONDENT REPORT TITLE=INDONESIA / POLITICS - UPDATE (L-ONLY) NUMBER=2-261798 BYLINE=PATRICIA NUNAN DATELINE=JAKARTA CONTENT= VOICED AT: INTRO: A cabinet minister fired by Indonesian President Wahid has rejected the president's allegations that he engaged in corruption. But as Patricia Nunan reports from Jakarta, the former official, Laksamana Sukardi, opposes a cabinet walk-out by members of his party. TEXT: Dismissed cabinet minister Laksamana Sukardi has denied he committed any wrongdoing in the appointments of eight officials to the government-owned telecommunications company. /// SUKARDI/ ACT/// About allegations of corruption in Indonesia, these allegations should be proven and brought to court instead of giving a slanderous accusation that is baseless and groundless. /// END ACT /// Mr. Sukardi, a member of the Indonesian Democratic Party of Struggle, the P-D-I, was minister of investment and state enterprises. He was fired by President Wahid Monday. The president alleged the officials appointed by Mr. Sukardi are known to be dishonest. Yusuf Kalla of the Golkar party, who held the post of minister of trade and industry, was also fired. He too denies charges of corruption. President Wahid's decision to fire the two cabinet members angered other P-D-I and Golkar members. Leaders of both parties threatened to withdraw their remaining members from the cabinet to protest the president's decision. But after meeting with the head of P-D-I, Vice President Megawati Sukarnoputri, Mr. Sukardi says he is not in favor of the move. /// SUKARDI ACT /// Whether P-D-I will withdraw the ministers from the cabinet -- I highly recommend Megawati should not withdraw. /// END ACT /// Mr. Wahid removed the two ministers after a team from the International Monetary Fund warned the president that it wants to see real progress in the implementation of financial reforms, before it agrees to release 400 million dollars in loans to Indonesia. The funds were delayed last month because the I-M-F said the government has been slow to apply several key reform measures. Some cabinet members accused the president of making Mr. Sukardi and Mr. Kalla scapegoats for the loan delays. It is the fourth cabinet reshuffle by the president in his six months in office and it prompted parliament to summon President Wahid to a five-hour questioning on Thursday. The reshuffles have given rise to criticism that the cabinet is becoming paralyzed by factionalism. This week's political disputes also sent jitters through financial markets -- with the Indonesian currency breaking eight thousand to the U-S dollar -- its lowest rate since President Wahid took office in October. NEB/PN/FC/KL NEB/ 28-Apr-2000 07:32 AM EDT (28-Apr-2000 1132 UTC) NNNN Source: Voice of America .





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